using the base case, calculat the composite effects of a 5 percent increase in sales, a 2 percent decrease in Gross Margin, and a 5 percent increase is SG&A as percent of sales.
	Base Case	Combine
Sales	$ 2,100.00
Cost of Goods Sold	$ 1,456.00
Selling, general, and Administrative expense	$ 401.00
Depreciation	$ 121.00
Research and development	$ 112.00
total cost and expense	$ 1,858.00
Operating Income	$ 252.00
Intereste expense	$ 34.00
Earnings before income taxes	$ 218.00
Provision for income taxes	$ 44.00
Net Income	$ 174.00
For the base case in this question, as a percentage of sales, COGS = 58 percent, SGA = 19 percent, R&D = 5.3 percent. Depreciation, interest exepense are fixed as stated. Tax Rate is 20 percent.